Typical symptoms of the presence of multicollinearity include:
A) the estimated regression coefficients to vary substantially from sample to sample ; this fact raises their standard errors; hence, theis unlikely to be greater than 2, or statistically significant
B) the estimated regression coefficients change greatly in value as independent variables are dropped from or added to the regression equation
C) the signs of the estimated regression coefficients are nonsensical; they are negative when common sense suggests positive signs and vice versa
D) all of these and more
E) none of these

Question

Quizplus · Accepted Answer

Multicollinearity typically causes the estimated regression coefficients to be unstable (varying greatly from sample to sample), to change significantly when variables are added or removed from the model, and can lead to counterintuitive signs on coefficients. Thus, all the options listed are symptoms of multicollinearity.

Typical Symptoms of the Presence of Multicollinearity Include